Business in the Czech Republic follows most of the norms of Western society. Hard work is expected and rewarded. However, the culture does have a rather laid-back attitude and moves at a slower pace than some other major business centres.
Working hours
In the EU, the maximum working hours limit was set at 48 hours per week and the Czech Republic follows this requirement. The average working time is statistically around 39 hours per week. People under the age of 18 may not work longer than 30 hours per week and their shifts should not exceed 6 hours a day.
The current minimum wage is lower than most of the EU at 200 euros a month. This appears to be because the Czech Republic is still undervalued.
The average yearly gross salary is between 200,000 and 250,000 Kc. Differences in salary can be found in different regions. The salaries in Prague reach western European levels, whereas workers in more rural areas make far less.
Most jobs are under contract. An employment contract must be in writing and the employee should read and understand all conditions before signing. If it is in a language other than your mother tongue, you should allow a trusted advisor (like a lawyer or close friend) that is fluent in that language to inspect it.
Salary may not be included in a Czech employment contract. If it is not included in the contract, however, there has to be a separate agreement stating the amount of income. The contract should address length of contract, whether the company has consent to process your personal data, length of probation period, etc.
It is common to go through a probational period at the beginning of a new job. The length of time this is expected should be stated in the contract. The maximum length for a probation period in the Czech Republic is three months. Within that time frame, the employer can dismiss the employee at any time. This does not entitle the employee to any further benefits. Once the probation period is up, the employee gains full rights.
An employment contract in the Czech Republic may be terminated by agreement, notice, immediate termination or termination within the probationary period. The company must give at least two months notice. If the employee does not meet requirements for performing the job, they may be laid off only after having received a warning within twelve months prior to the redundancy.
Single parents with children below fifteen, disabled workers and those with occupational disease cannot be made redundant unless the employer ensures their new employment.
Severance pay is uniform for all employees. The minimum is two months salary, but collective agreements may offer more compensation.
There are 12 national holidays in the Czech calendar, with only Easter Monday changing on an annual basis. Trams and metros run on Sunday service and local shops and services are closed on these days.
Set by EU standards, there is a four week paid vacation. A longer vacation may be offered as an employee benefit. Employees in public administration, autonomous public bodies and contributory organizations are granted five weeks. Teachers and academic staff will get 8 weeks off. Vacation is permissible after at least 60 days at your place of employment. If you have worked less, you may take 1/12 of the annual vacation entitlement.
Update 27/01/2011
If you want to move money abroad, from Czech Republic or to Czech Republic for example, Fexco provides efficient and secure global bank to bank transfers and bespoke payment solutions for both business and personal clients.
Fexco provides a secure international money transfer service online or by telephone with bank beating fx rates and low fees. Specialises in high-value transfers.
Fexco will help you to keep your overseas money transfer costs to a minimum.
Margin | 0.6% |
---|---|
Regulator | FCA |
Fee | £10 < £5K or Free > £5k |
Mini | £1K |
Ccy | All (130 currencies, incl ‘exotics’) |
Services | Repatriation of funds, Property, Regular payments, High Value payments, spot, online, telephone. |
When you are ready to make your transfer, John and his team will be available to help you with better rates and an unrivalled service to make sure your funds are delivered securely and speedily.